Leasedrive ponders fleet industry’s fate for 2012
Britain’s Olympic year in the spotlight could be cringe-filled nightmare due to London’s neglected transport network, according to Leasedrive.
Roddy Graham, Commercial Director for the vehicle management group, said that while Lord Sebastian Coe has competently pulled together the construction of numerous venues and stadia, he has failed to get a grip of the capital’s transport infrastructure.
“It’s hard to see London not repeating the Atlanta Games nightmare when it comes to transportation delays,” commented Roddy.
“During the 16 days, an extra nine million spectators will descend on the capital, which is often log-jammed at the best of times.”
Despite an extra £6.5bn spent by Transport for London on line extensions, Mr Graham expects the fleet industry to be stretched with transport-based companies forced to stagger working times, deliveries and increase home working.
“While affecting the fleet sector for 16 days, other factors will come into play throughout the year outside the pursuit for gold,” he added.
“Inevitably, the cream will rise to the top as further industry consolidation takes place and innovators capitalise on the tough times ahead by pressing home their competitive advantage.
“Transport definitely appears a weak link and will affect the fleet industry.”
Predictions
Regarding other unfoldings for the twelve months ahead, Mr Graham reckons large leasing companies could become fewer: “With top 10 of 2011’s Fleet News FN50 accounting for 75% and the top 25 accounting for 94% of the funding of the smallest FN50 for 12 years, expect consolidation to continue with fewer players making up a more select league table.”
Operating costs will also be remain top of the agenda, adds Roddy: “Expect every cost line to be challenged and the winners will be those who do even more with less.
“Past failure to invest in leading edge fleet systems will expose those who for too long were content to rest on their laurels. A combination of world class fleet management systems, integrated solutions and top quality people will be the winning formula for delivering further added value to cost conscious customers.”
Tax efficiencies could equate to more Salary Sacrifice schemes, Roddy explains: “With salaries frozen or increases kept to a bare minimum, salary sacrifice could become more popular for hard-pressed employees wishing to see their money go further.
“They can enjoy the benefits and status of a company car at a lower cost than anticipated, with savings on income tax and NI contributions outweighing BIK contributions. They’ll also be behind the wheel of a more fuel efficient, fully serviced and maintained new car for the next two or three years backed by comprehensive insurance provided by their employer.
“It’s tax efficient, so expect more employees to show interest.”
EV popularity
Although 2011 has often been branded the year of the electric car, 2012 will see EVs become an increasingly common sight on British roads.
“With more and more new electric vehicles coming on stream from vehicle manufacturers, expect EVs to start making their presence quietly felt, albeit unannounced to pedestrians and cyclists, in towns and cities,” said Roddy who may even be tempted to introduce a few electric numbers to the Leasedrive fleet.
“Currently only driven by true believers, I expect more people to test them, either through city car clubs or vehicle rental companies. As always, the greatest drawback is the lack of a proper charging point network infrastructure.
“With the Department for Transport finally announcing a central database for charging points, expect a more concerted and consolidated effort to not leave drivers stranded with no charge.”
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